The men were arrested after police were called to the Sydney Jewish Museum in Darlinghurst just after midday.
Police are yet to confirm details surrounding the arrests but the men have been taken to a police station.
“Three men have been arrested by officers attached to Kings Cross Police Area Command, after police were called to Darlinghurst Road, Darlinghurst shortly before midday today,” police said in a statement.
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“The men have been taken to Kings Cross Police Station.
“While there is no ongoing risk to the public Darlinghurst Road remains closed the public to ongoing inquiries.
“More information will be provided once it becomes available.”